On July 18, Coca-Cola (NYSE:KO) released Q2 2006 earnings for the period ended June 30.

  • Revenues slightly beat estimates, and EPS were $0.02 above expectations.
  • A cost-of-goods-sold decline on a year-over-year basis, combined with a revenue increase, drove margin improvements.
  • Latin America, East and South Asia, and the Pacific Rim were the best-performing regions.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q2 2006

Q2 2005

Change

Sales

$6,440

$6,476

$6,310

2.6%

Net Profit

--

$1,836

$1,723

6.6%

EPS

$0.72

$0.78

$0.72

8.3%

Diluted Shares

--

2,352

2,401

(2.0%)



Get back to basics with a look at the income statement.

Margin Checkup

Q2 2006

Q2 2005

Change*

Gross Margin

67.42%

65.99%

1.43

Operating Margin

31.49%

31.25%

0.24

Net Margin

28.35%

27.31%

1.04

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q2 2006

Q2 2005

Change

Cash + ST Invest.

$4,130

$5,011

(17.6%)

Accounts Rec.

$2,593

$2,349

10.4%

Inventory

$1,624

$1,476

10.0%



Liabilities

Q2 2006

Q2 2005

Change

Accounts Payable

$5,317

$4,288

24.0%

Long-Term Debt

$1,140

$1,110

2.7%



Learn the ways of the balance sheet.

Cash Flow Highlights

Q2 2006

Q2 2005

Change

Cash From Ops.

$2,762

$3,534

(21.8%)

Capital Expenditures

$626

$376

66.5%

Free Cash Flow

$2,136

$3,158

(32.4%)



Find out why Fools always follow the money.

Related Companies:

  • Pepsico (NYSE:PEP)
  • Cott (NYSE:COT)
  • Cadbury Schweppes (NYSE:CSG)
  • Coca-Cola Enterprises (NYSE:CCE)
  • Coca-Cola FEMSA SA (NYSE:KOF)

Related Foolishness:

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

Coca-Cola is a Motley Fool Inside Value selection. Pop the cap on more bubbly value opportunities with a free 30-day guest pass.

At the time of publication, Nathan Parmelee had no position in any company mentioned. Fool rules are here.